LA

The 10-acre terminal market, which supplies produce to restaurants, hotels, retailers and distributors in California, Nevada, Utah, Colorado, Oregon, Washington, Idaho and Arizona, has reportedly seen a 35 percent reduction in sales over the past year, as well as a significant change in the types of products being sold.

“For the last two years, we have seen how things have worsened,” said Pedro Astorga, president of the market’s vendor association. “That’s why we’ve had to tighten our belt and, like us, so has every person in the supply chain; producers, distributors, vendors and customers in general.”

Commenting on recession-related changes in demand, Astorga added, “People are not going to stop eating, but the menu is definitely changing. We no longer sell specialized or exotic products; people are simply not buying them.”

Note to distributors: If you—or your customers—are buying produce from a wholesale market, be sure to check it out from a food safety standpoint. Two years ago, this same L.A. market was the subject of an undercover investigation by local TV station KNBC, which found deplorably filthy conditions, including rats, produce stored next to porta potties and garbage dumpsters, no hot water and soap, vendors urinating out in the open near open boxes of produce, and countless other egregious food safety violations. In the report, Caroline Smith De Waal, a consumer advocate from the Center for Science in the Public Interest, noted that wholesale produce markets are a hidden hazard and a weak link in the food chain.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Franchisors who want faster remodels should reach into their pocketbooks

The Bottom Line: Burger King is spending $550 million to get more of its restaurants remodeled, not counting its own upgraded restaurants. More brands should do this.

Leadership

Meet the restaurant fixer who now owns Etta

Tech entrepreneur Johann Moonesinghe suddenly finds himself leading a growing group of restaurants. His secret? He doesn't expect to make a profit.

Financing

Looking for the next Chipotle? These 3 chains are already there

The Bottom Line: Wingstop, Raising Cane’s and Jersey Mike’s have broken free from the pack of well-established growth chains. Here’s why this trio stands out.

Trending

More from our partners